The Pellucid Perspective - January 2021 - 7

INDUSTRY
TRENDS

State of the Industry Preview = Good News
Sustainability Takes on New Meaning
By Stuart Lindsay

ur annual State of the Industry report will be full of
welcome good news. Our apologies to those who consistently portray us as pessimists; but we simply try to
sit on the fence and analyze the facts. Some cynics say that all
you get from sitting on a fence is a pain in the A$%; but we
strive to be both consistent and objective and these times can
use a little more of both. At least this year we got to see that
the grass is indeed greener on the other side. Here are a few
highlights:
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Interest in golf is likely at a 20 year high with 60+
Million more rounds
An estimated 5 Million new or returning golfers
The interest is " real " - weather played only a 2% role in
a 14% increase in rounds

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Cart usage limitations and increased hygiene protocols
Higher " touchless " payment processing costs
Limited scaled down Food & Beverage service
Tee space capacity adjustments - mandated or attempts
to alleviate slow play

In April, we calculated that the cost of single rider restrictions would reduce revenues by about 11% for an " average " golf
course with a 50 cart fleet. Data we have seen from a variety of
sources indicates that this estimate was pretty accurate. Jim K.
will detail this in the SOI - his calculations based on our historical metrics show that with rounds up about 14%; we were
able to generate over $1 Billion in increased revenue (about 3%
for an " average " course).
The increased emphasis on internet reservations, advance
payments and use of mobile apps means that credit card processing costs were higher. These processes are " card not present "
transactions which carry about a 50% higher charge than those
using standard terminals for payment - more if you accept debit
cards with PIN input and those transactions are moved online
and carry " credit card " processing rates.
For many courses, F&B revenues were down; however, many
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Interest in golf is likely at a 20 year
high with 60+ Million more rounds.

PHOTO BY ANDREW SHELLEY ON UNSPLASH

Sustainability now does not simply refer to environmental
practices; but how to maintain this high level of interest. By far,
the most frequent question we get is how we can keep and capitalize on the positive momentum we saw in 2020? Last year was
not without challenges - many due to higher costs associated
with adopting " safe practices " and restrictions on gathering size
and indoor seating service. And there are other customer service
questions related to reduced personal contact and a noticeable
increase in " slow play " .

saw improved profitability due to simplified offerings and concentration on higher margin items. Beverage service was also a
bigger percentage of the mix and carry lower COGS.
These issues are not going away in 2021. Without going into
a " scientific " discussion or debate over vaccine efficacy and/or
rollout; current lack of containment likely means that things
will not return to " normal " anytime soon - we don't even know
how long the vaccines will last. This also means golf will remain
as a " safe " recreational and leisure time option and the boost we
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The Pellucid Perspective - January 2021

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